Hong Kong-based technology company Meitu raised the total value of its cryptocurrency portfolio to nearly $ 100 million after the company announced on April 8 that it was buying another $ 10 million bitcoin (BTC).
Meitu HK, a wholly owned subsidiary of Meitu Inc, a wholly owned Hong Kong (registered in the Cayman Islands) acquired 175.67798279 Bitcoins for a total of $ 10 million, which means the purchase price is around $ 57,000 per coin. It is claimed that the purchase was made using available cash reserves based on open market prices.
Over the past month, Meitu raised $ 90 million to buy a cryptocurrency, split between Bitcoin and Ether (ETH). After its recent acquisition on Thursday, the company acquired $ 49.5 million in BTC and $ 50.5 million in Ethereum.
The company previously stated that it would not have been able to make its previous purchases without the help of the US cryptocurrency exchange Coinbase. Coinbase was not mentioned in the latest disclosure, but Oslo Bowers was previously responsible for managing investments for other corporate divisions such as MicroStrategy.
The opening explains why the company added its Bitcoin holdings and compares the potential impact of the technology on the mobile internet:
“The board is of the view that blockchain technology could disrupt both current financial and technological industries, just as the mobile internet has disrupted the internet on computers and many other offline industries.”
It reveals information on Bitcoin instruments as a store of value, fueled by limited supply. It also indicates its portability and its position as a hedge against inflation caused by the aggressive practice of printing money by central banks.
“Some of these features can even transform Bitcoin into a form superior to other alternative value stores such as gold, gems and real estate. As an alternative store of value, the price depends primarily on future demand, which is determined by consensus among investors and the general public.”
Listed companies in China get involved in turbulent waters when investing in cryptocurrencies. China recognizes cryptocurrencies as commodities, but not as usable currencies. They are forbidden to trade in fiat money, but due to the state of their circulation, some have suggested that it is still possible to trade cryptocurrencies with one another in the same way as other commodities, which remains a mysterious case in the East.